Conventional Loans: The Gold Standard in Financing.

Looking for the lowest long-term cost? Conventional loans offer the most flexibility

for those with stable income and solid credit.

Minimum Requirements to Qualify

Standard guidelines for a NextGen Conventional Loan.

 Credit Score

No universal minimum credit score is required, though higher scores qualify for better rates and terms.

Down Payment

As little as 3% for first-time buyers. 5% to 20% for repeat buyers or specialized programs.

DTI Ratio

Normally, debt-to-income ratio should be 43% or lower, though exceptions exist up to 50%.

Property Type

Primary residences, second homes, and investment properties (1-4 units) are all eligible.

Conventional vs. FHA

Which path is right for your financial profile?

The Conventional Path

Best for borrowers with higher credit scores and lower debt.

  • PMI can be removed once you reach 20% equity (lowering your monthly payment automatically).

  • Lower overall lifetime costs than FHA for strong credit profiles.

  • Used for second homes or investment properties.

The FHA Alternative 

Best for borrowers with lower credit scores or smaller down payments.

  • Mortgage insurance (MIP) usually stays for the life of the loan. 

  • More lenient credit score requirements (500+). 

  • Limited to primary residences only.

What you'll need to apply

Gather these documents to speed up your

pre-approval process.

Income & Employment

  • Last 2 years of W-2 forms

  • Most recent 30 days of paystubs

  • Last 2 years of Federal Tax Returns

Assets & Identity

  • 60 days of Bank Statements

  • Proof of Down Payment (Savings)

  • Driver's License or Passport

Mortgage Payment Calculator

Estimate your monthly mortgage payment using home price, down payment, interest rate, and loan term. Get a quick principal and interest estimate for your home buying budget.

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What Our Clients Are Saying

Don't just take our word for it. Hear from the families we've helped

secure their dream homes.

Frequently Asked Question

How much can I save by making extra mortgage payments?

The savings depend on your loan balance, interest rate, and how much extra you pay. For example, adding $200 per month to a $300,000 mortgage at 6.38% can save you over $72,000 in interest and cut roughly 6 years off a 30-year loan. Use the calculator above to see your exact savings.

Should I make extra mortgage payments or invest the money?

It depends on your financial situation. Extra mortgage payments offer a guaranteed return equal to your interest rate with zero risk. If your mortgage rate is 6% or higher, paying it down is a strong choice. However, if you have high-interest debt like credit cards, pay those off first. Consider maxing out tax-advantaged retirement accounts before making extra mortgage payments.

Is it better to pay extra monthly or make a lump sum payment?

Both approaches reduce your balance and save interest, but monthly extra payments typically work better for most people because they build a consistent habit and reduce your principal steadily throughout the year. A lump sum payment is effective if you receive a bonus or inheritance. The key factor is timing: the earlier you make extra payments, the more interest you save.

Do extra mortgage payments go toward the principal?

Yes, when you make an extra payment and specify it as a principal-only payment, the entire amount goes toward reducing your loan balance. This is different from your regular payment, which splits between principal and interest. Always confirm with your lender that extra payments are applied to principal, not future payments.

Are there penalties for paying off a mortgage early?

Most modern mortgages do not have prepayment penalties. FHA loans, VA loans, and loans from federally chartered credit unions prohibit prepayment penalties by law. However, some conventional loans may include a penalty during the first 3 to 5 years. Check your loan agreement or ask your lender before making large extra payments.

How do biweekly mortgage payments work?

Instead of making 12 monthly payments per year, you pay half your monthly amount every two weeks. Since there are 52 weeks in a year, this results in 26 half-payments, which equals 13 full monthly payments. That one extra payment per year can shave several years off your mortgage and save thousands in interest.

Start your Conventional
Pre-Approval.

NextGen Mortgage can issue conventional loan pre-approvals in as little as 15 minutes.